Panelized Modular Building Systems Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, UK, Canada, Germany, India, France, South Korea, Australia - Size and Forecast 2024-2028

Panelized Modular Building Systems Market Size 2024-2028

The panelized modular building systems market size is forecast to increase by USD 47.7 billion at a CAGR of 7.08% between 2023 and 2028.

• The market is experiencing significant growth due to several key factors. One of the primary drivers is the cost efficiency associated with these systems. Panelized construction, using engineered wood products and plywood, allows for faster build times and reduced labor costs, making it an attractive option for developers and construction companies. Additionally, there has been an increase in mergers and acquisitions among companies In the industry, leading to consolidation and increased competition. However, there are challenges facing the market as well. Skepticism towards modular construction persists, with some stakeholders expressing concerns about the durability and quality of these buildings. Addressing these concerns through education and innovation will be crucial for the continued growth of the market.

What will be the Size of the Panelized Modular Building Systems Market During the Forecast Period?

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• The market is experiencing significant growth due to the increasing demand for energy-efficient structures in various sectors. Prefabricated homes, constructed using structural insulated panels, are gaining popularity In the low-cost housing and public housing units segments. Simultaneously, the luxury apartment and high-rise building markets are embracing panelized modular systems for their speed of construction and cost savings. In the residential infrastructure domain, general contractors and developers are increasingly adopting offsite construction methods, including prefabricated construction, to enhance efficiency and reduce waste. Sustainable construction practices are driving the market, with panelized modular systems offering advantages in terms of energy efficiency and reduced environmental impact.

• Modular factories are leveraging cloud computing strategies to optimize production processes and improve collaboration with clients. The banking market and mobile devices are also influencing the market, with digital platforms facilitating financing and design processes. Panelized modular systems encompass complete 3D parts, including walls, roof panels, and floors, made from diverse materials such as timber frame, concrete, and other advanced composites.

How is this Panelized Modular Building Systems Industry segmented and which is the largest segment?

The panelized modular building systems industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• End-user
  • Residential
  • Commercial
  • Industrial
• Material
  • Wood
  • Metal
  • Concrete
  • Composite
• Geography
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
    • France
  • South America
  • Middle East and Africa

By End-user Insights

• The residential segment is estimated to witness significant growth during the forecast period.

The market is experiencing growth due to the increasing adoption of modular construction for various projects, including public housing units, luxury apartments, and high-rise buildings. Modular construction offers cost savings through efficient fabrication processes, reducing construction time, labor costs, and material waste. In India, Magicrete, a manufacturer of AAC blocks, construction chemicals, and precast construction solutions, completed a 1008-unit mass housing project using their 3D modular precast construction system. This project achieved cost parity with traditional construction methods while cutting construction time by up to 40%. This innovation showcases the potential of precast concrete technology to enhance housing accessibility and reduce construction costs.

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The residential segment was valued at USD 45.90 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• APAC is estimated to contribute 46% to the growth of the global market during the forecast period.

Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The panelized modular building system market In the Asia Pacific (APAC) region is experiencing significant growth due to several factors unique to the area. Rapid urbanization and increasing infrastructure needs are driving the demand for efficient, cost-effective, and sustainable construction solutions. Panelized modular systems offer an attractive alternative to traditional construction methods, particularly in densely populated and rapidly developing urban areas. These systems enable the construction of buildings quickly with minimal disruption, making them ideal for metropolitan regions where logistical challenges and extended timelines are common. Additionally, the emphasis on sustainability is a key factor fueling the adoption of panelized modular building systems In the APAC market.

Market Dynamics

Our panelized modular building systems market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise In the adoption of the Panelized Modular Building Systems Industry?

Cost efficiency associated with panelized modular building systems is the key driver of the market.

• It involves the use of energy-efficient structures such as structural insulated panels, are gaining popularity In the US construction sector due to their cost efficiency. These systems, which consist of prefabricated homes, and complete 3D parts including walls, roof panels, and floors, are manufactured offsite in modular factories. The prefabricated nature of these systems reduces labor costs and construction time on-site, making them an attractive option for developers and contractors. The precision of manufacturing in a controlled factory environment minimizes material waste and allows for the reuse or recycling of leftover materials.

• Additionally, panelized modular building systems are well-suited for public housing units, luxury apartments, and even highrise buildings in areas with extreme climatic conditions or earthquake-prone areas. The construction industry's shift towards sustainable construction practices, facilitated by digital tools like mobile devices and social media, further boosts the demand for these systems. Panelized modular building systems offer a cost-effective solution for residential infrastructure projects while maintaining high-quality standards.

What are the market trends shaping the Panelized Modular Building Systems Industry?

An increase in the number of mergers and acquisitions among companies is the upcoming market trend.

• The market has experienced significant growth, with an increasing number of mergers and acquisitions among companies. This consolidation trend is driven by the desire to enhance technological capabilities, expand market reach, and streamline operations. In July 2024, Wells completed the acquisition of Gate Precast, combining two major industry players and broadening their offerings in innovation, solutions, and services across the country. This strategic move allows both companies to benefit from each other's expertise and resources, enabling them to better serve the construction sector's evolving needs. The adoption is on the rise due to their energy-efficient structures, which are particularly appealing in extreme climatic conditions and earthquake-prone areas.

• These systems are also ideal for low-cost housing, public housing units, luxury apartments, and high-rise buildings, making them a popular choice for residential infrastructure projects. In the construction sector, sustainable construction practices and offsite construction, including prefabricated homes and modular factories, are increasingly being adopted to reduce costs and improve living standards. They are also gaining popularity In the residential construction industries, with general contractors and developers recognizing their benefits. Mobile devices and social media have played a significant role in promoting these systems, allowing for easy access to information and visualization of completed projects. Digital cash and an omnichannel approach to sales have further streamlined the purchasing process, making it more convenient for clients.

What challenges does the Panelized Modular Building Systems Industry face during its growth?

Skepticism towards modular construction is a key challenge affecting the industry's growth.

• Modular construction, which involves the use of panelized systems such as structural insulated panels for constructing buildings offsite, is gaining traction In the construction sector. However, the adoption of these energy-efficient structures, particularly in residential infrastructure, is not without challenges. Skepticism towards modular construction persists due to concerns over quality control, durability, and long-term performance. General contractors, developers, and contractors, who are accustomed to traditional construction methods, may be hesitant to invest in modular factories or integrate prefabricated construction methods into their projects. In the residential construction industries, the demand for low-cost housing and public housing units, as well as luxury apartments and highrise buildings, is driving the need for sustainable construction practices.

• These systems offer solutions to these demands with their energy efficiency and cost savings. However, addressing the skepticism toward these systems requires addressing concerns about their structural integrity and long-term performance. Modular construction is particularly beneficial in earthquake-prone areas and extreme climatic conditions, where traditional construction methods may face challenges. The use of complete 3-dimensional parts, such as walls, roof panels, and floors, can help ensure structural stability and resistance to external forces. To promote the adoption, it is essential to leverage digital channels such as mobile devices and social media to educate stakeholders about their benefits and address any misconceptions.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, panelized modular building systems market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence In the industry.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Al Dabbagh Group
• ATCO Ltd
• Bechtel Corp.
• Berkshire Hathaway Inc.
• BOUYGUES
• ClarkWestern Dietrich Building Systems LLC
• Dexterra Group
• EPACK Polymers Pvt Ltd.
• Fleetwood Australia
• GUERDON LLC
• Hickory
• HONOMOBO
• Kwikspace Pty Ltd.
• Laing O Rourke
• Lendlease Corp. Ltd.
• Method Homes
• Modulaire Group
• Palomar Modular Buildings.
• Portakabin Ltd.
• Pujol Group
• Skanska AB
• The Wells Companies
• Vantem
• Volumetric Building Companies
• Wernick Group

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

These systems have gained significant traction In the global construction industry, offering numerous benefits that cater to various market segments. These systems, which involve the manufacture and assembly of building components off-site, have become increasingly popular due to their energy efficiency, cost-effectiveness, and ability to meet diverse housing needs. The construction sector's shift towards offsite and prefabricated methods has been driven by several factors. Sustainable construction practices have become a priority for developers and contractors, with energy efficiency being a key consideration. This enable the use of insulated panels, reducing energy consumption and improving living standards.

Moreover, these systems offer cost savings through efficient manufacturing processes and the ability to construct buildings faster than traditional methods. This is particularly beneficial for low-cost housing projects and public housing units, where time and budget constraints are significant. In earthquake-prone areas and regions with extreme climatic conditions, panelized modular systems provide an attractive solution. The use of complete 3D parts, such as walls, roof panels, and floors, ensures structural integrity and resistance to natural disasters. The construction industry's adoption of digital technologies, including mobile devices and social media, has also influenced the growth.

Furthermore, contractors and developers can easily access design and manufacturing resources online, streamlining the construction process and reducing the need for extensive on-site labor. The market encompasses various applications, from residential infrastructure to luxury apartments and high-rise buildings. General contractors and developers benefit from the flexibility and scalability of these systems, enabling them to meet diverse project requirements. Modular factories play a crucial role In the production and assembly. These facilities enable mass production, ensuring a consistent supply of high-quality components and reducing lead times. Despite their numerous advantages, these systems face challenges, including the need for standardization and regulatory compliance.

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What are the Key Data Covered in this Panelized Modular Building Systems Market Research and Growth Report?

• CAGR of the Panelized Modular Building Systems industry during the forecast period
• Detailed information on factors that will drive the Panelized Modular Building Systems market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the panelized modular building systems market growth of industry companies

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